Balassa?Samuelson Effect in Iran
Proceeding: 12th International Academic Conference (IAC)Publication Date: 2014-09-01
Authors : Ghavidel Saleh; Mahmoudzadeh Mahmoud; Radfar Hamideh;
Page : 452-463
Keywords : Balassa?Samuelson effect; purchasing power parity; productivity gap; tradable and non-tradable sectors;
Abstract
Deviations from purchasing power parity because a deviation of productivity is Balassa?Samuelson effect. The Balassa?Samuelson effect depends on inter-country differences in the relative productivity of the tradable and non-tradable sectors. According to this hypothesis, Imai (2010) make a model and measurement Balassa?Samuelson effect in Japan during 1970-1955 when exchange rate in Japan is fixed. In this paper we measurement Balassa?Samuelson effect in Iran economic. The result shows that Balassa?Samuelson effect in Iran is -2.1. Then devaluation of the national currency in Iran according to Balassa?Samuelson effect would be equal to 2.1 in annual, while devaluation of the national currency in Iran 13% in a year.
Other Latest Articles
- Effects of Entrepreneurship on Economic Growth in Turkey: An Empirical Analysis
- Fight against terrorism within the rules of international law and Croatian legislative response
- A NEW PARADIGM IN MANAGEMENT: ETHICAL LEADERSHIP
- INTEGRATING ECOLOGICAL FOOTPRINT AND IDENTIFICATION OF FLOOD ECOLOGY DISASTER DUE TO CLIMATE CHANGE IN SOUTH SUMATRA
- A New Legal Approach Towards the Nagorno-Karabakh Conflict Peaceful Resolution
Last modified: 2015-03-07 20:31:12